Maryland car insurance laws


Maryland’s car insurance laws, like most other states, require that drivers have minimum coverage. Maryland’s minimum coverage car insurance law makes it illegal to drive without insurance. This can lead to severe penalties. Learn the laws about Maryland insurance before you drive in Maryland. This will not only prevent legal problems, but can also help you make sure that you have the right coverage to meet your needs.

Based on reports by the Maryland department of transportation, some traffic statistics have been gathered below. Couple with these accident reports are statistics from the Insurance Information Institute (iii) regarding the percentage of uninsured drivers in Maryland. These numbers will help you understand Maryland’s auto insurance requirements. They also show how insurance can protect drivers financially.

  • In 2019, Maryland had 115,926 car accidents.
  • There were 32,919 bodily injuries among the 115,926.
  • Property damage was also caused by 82,511
  • In Maryland, 14% of drivers were not insured in 2019.

Maryland’s car insurance laws

Maryland car insurance laws require all drivers to carry basic liability coverage, also known as minimum coverage insurance. This requirement covers bodily injury liability as well as property damage liability. These coverages cover the cost of injuries or property damage to others that you cause by an auto accident. Your injuries and damages will not be covered by basic liability.

  • Bodily Injury: $30,000 per Person, $60,000 per Accident
  • Property damage: $15,000 per accident
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Maryland has liability insurance

Maryland insurance laws require that all drivers have minimum liability coverage. Maryland’s minimum car insurance covers bodily injury liability as well as property damage liability. It may not be sufficient. Drivers may have to pay more for their insurance because of auto accidents. To help avoid this, some drivers increase their coverage limits.

Basic liability coverage has another problem: it is not designed to cover the expenses of another person. Let’s say you are at fault for an accident. Your minimum coverage will cover the expenses of the other driver (and their passengers) but not yours. Basic liability is intended to protect those who are not at fault.

Many drivers add collision, comprehensive, or medical coverage to their auto insurance. These policies cover you and your car in the event of any injuries or damages. Collision insurance covers the costs of any damage to your car that occurs while it is being driven. Comprehensive insurance covers the costs of any damage that the vehicle suffers while it is not being driven. Many of Bankrate’s top car insurance companies offer these policies in addition to minimum coverage plans.

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Is Maryland a state of no-fault?

Maryland is an at fault state. Also known as a torte State, Maryland is considered to be at fault. Drivers are legally responsible for any damages to their vehicles if they are found to be ‘at fault’ in an accident. An auto accident that occurs in an at-fault condition will result in at least one driver being deemed to be responsible for the accident. Your basic liability coverage will cover the expenses of any other drivers or injuries if you are found to be at fault. Maryland law requires auto insurance for all drivers.

Maryland drivers without insurance face severe penalties

Driving without car insurance in Maryland is illegal and can land you in significant trouble. Driving without insurance can lead to fines and vehicle impoundment.

For your first offense, you’ll be fined $150 for the first month. Then you’ll be fined $7 for each subsequent day (up to $2,500 per car) until you show proof of insurance. It’s easy to see why driving without insurance could be more expensive when you consider that the annual average cost of a full coverage policy is $1,674.

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Maryland offers additional auto insurance options

Some drivers opt to increase their minimum coverage. Comprehensive and collision insurance are options that can fill in gaps in basic liability. These extra options are not required by Maryland law but can be useful in certain circumstances.

  • Medical payments coverage: Medical payments coverage follows the insured driver and covers medical expenses, no matter who is at fault. These policies protect the insured and their passengers. Even if injuries are not related to traffic accidents, this policy can pay for medical expenses.
  • Underinsured motorist coverage or uninsured motorist coverage. Although Maryland law requires that all drivers have insurance, some drivers drive without it. Anyone who is involved in an accident with uninsured drivers can be a financial nightmare. Uninsured and underinsured motorist policies help protect against this situation. If you have one of these policies it can cover the basic liability coverage for the other driver if they are at fault in an accident or have insufficient insurance.

Questions frequently asked

Which Maryland car insurance company is best?

There are many factors that determine which car insurance company is best for you. Every driver is different and each company offers different rates and deals. Experts recommend comparing insurance companies when shopping for a new policy. Consider comparing the companies in the Bankrate guide to the best car insurance companies in Maryland for 2021.

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What is the best car insurance in Maryland?

One person may not have the best car insurance, but another might. Many personal data is used by auto insurance providers to determine rates. These variables include factors such as age, driving record and insurance score. For a look at averages, consider the Bankrate guide to the cheapest car insurance companies in Maryland for 2021.

What is the cost of car insurance in Maryland?

Maryland’s annual car insurance cost is slightly higher than the national average. On average, in Maryland, a full coverage policy costs $1,877 per year. The average U.S. full coverage policy costs $1,674. Maryland’s minimum coverage policy costs $767 annually on average.